Test Company Ltd._V.1 Sample Town Financial Statement For the business year ended 31 December 2015 KENDRIS Ltd. Place, DD/MM/YYYY
Test company Ltd_V.1 Sample Street P. O. Box 5000 Sample Town Financial statements 2015 - Contents Page Balance sheet Income statement Cashflow statement Notes to the financial statements Proposed appropriation of available earnings Accountant's report - 2 -
Balance sheet as at 31 December Note % % ASSETS Current assets Cash and cash equivalents 2.1 287'033.13 8% 353'976.16 11% Current assets with a market price 2.2 0.00 0% 0.00 0% Trade receivables 2.3 518'139.01 15% 546'147.41 16% Other short-term receivables 2.4 311.33 0% 6'078.95 0% Inventories and non-invoiced services 2.5 1'703'000.00 50% 1'550'000.00 46% Accrued income and prepaid expenses 2.6 95'520.20 3% 60'260.74 2% Total current assets 2'604'003.67 76% 2'516'463.26 75% Non-current assets Financial assets 2.7 0.00 0% 0.00 0% Participations 4 0.00 0% 0.00 0% Movable tangible assets 2.8 835'902.00 24% 831'502.00 24% Immovable tangible assets 2.9 0.00 0% 0.00 0% Intangible assets 2.10 0.00 0% 0.00 0% Non-paid up share capital 5 0.00 0% 0.00 0% Total non-current assets 835'902.00 24% 831'502.00 25% TOTAL ASSETS 3'439'905.67 100% 3'347'965.26 100% - 3 -
Balance sheet as at 31 December Note in % in % LIABILITIES & SHAREHOLDERS' EQUITY Short-term liabilities Trade payables 2.11 1'406'919.41 41% 998'797.74 30% Short-term interest bearing liabilities 2.12 0.00 0% 0.00 0% Other short-term liabilities 2.13 275'521.06 8% 90'511.20 3% Accrued expenses / deferred income 2.14 94'957.28 3% 276'717.31 8% Short-term provisions 2.15 100'925.00 3% 198'943.00 6% Total short-term liabilities 1'878'322.75 55% 1'564'969.25 47% Long-term liabilities Long-term interest bearing liabilities 2.16 0.00 0% 0.00 0% Other long-term liabilities 2.17 1'290'576.37 38% 1'290'576.37 39% Provisions and similar items required by law 2.18 0.00 0% 120'000.00 4% Total long-term liabilities 1'290'576.37 38% 1'410'576.37 42% Total liabilities 3'168'899.12 92% 2'975'545.62 89% Shareholders' equity Share capital 5 100'000.00 3% 100'000.00 3% Legal capital reserves 0.00 0% 0.00 0% Legal earnings reserves 50'000.00 1% 50'000.00 1% Retained earnings - Profit brought forward 222'419.64 6% 163'938.03 5% - Loss / Profit for the year -101'413.09-3% 58'481.61 2% Own shares (-) 0.00 0% 0.00 0% Total shareholders' equity 271'006.55 8% 372'419.64 11% TOTAL LIABILITIES & SHAREHOLDERS' EQUITY 3'439'905.67 100% 3'347'965.26 100% Profit Loss earnings brought forward Profit Profit earnings brought forward - 4 -
Income statement for the period from 1 January to 31 December 2015 2014 Note in % in % Net income from sales of goods and services 2.19 6'929'832.43 97% 6'773'218.33 98% Changes in inventories of unfinished and finished goods and in non-invoiced services 230'000.00 3% 142'000.00 2% Operating income from sales of goods and services 7'159'832.43 100% 6'915'218.33 100% Material expenses 2.20-2'580'721.58 36% -2'250'654.29 33% Gross margin after material expenses 4'579'110.85 64% 4'664'564.04 67% Personnel expenses 2.21-3'396'413.15 47% -3'228'333.64 47% Gross margin after personnel expenses 1'182'697.70 17% 1'436'230.40 21% Rental expenses -96'600.00 1% -90'060.19 1% Maintenance, repairs and reparation expenses -644'000.00 9% -565'000.00 8% Car- and transportation expenses -75'000.00 1% -100'000.00 1% Property insurances, dues and charges -20'000.00 0% -22'000.00 0% Energy and waste disposal expenses -100'000.00 1% -125'000.00 2% Administration and computer expenses -250'000.00 3% -230'000.00 3% Advertising expenses -20'000.00 0% -24'900.00 0% Sundry operating expenses -5'434.74 0% -5'049.61 0% Total other operating expenses -1'211'034.74 17% -1'162'009.80 17% Operating result before interest, taxes, depreciation and amortisation (EBITDA) -28'337.04 0% 274'220.60 4% Depreciation of tangible assets 2.22-105'000.00 1% -100'000.00 1% Amortisation of intangible assets 2.22-46'201.12 1% -46'012.18 1% Impairment of non-current assets 2.23 0.00 0% 0.00 0% Operating result before interest and taxes (EBIT) -179'538.16-3% 128'208.42 2% Financial income 2.24 183.17 0% 501.56 0% Financial expenses 2.25-8'183.70 0% -13'729.14 0% Operating result before taxes (EBT) -187'538.69-3% 114'980.84 2% Non-operating income 12'138.65 0% 0.00 0% Non-operating expenses -77'000.00 1% -47'000.00 1% Extraordinary, non-recurring or prior-period income 12 159'500.00 2% 515.92 0% Extraordinary, non-recurring or prior-period expenses 12 0.00 0% 0.00 0% Result before taxes -92'900.04-1% 68'496.76 1% Direct taxes -8'513.05 0% -10'015.15 0% Loss / Profit for the year -101'413.09-1% 58'481.61 1% - 5 -
Cashflow statement for the period from 1 January to 31 December Note Loss / Profit for the year -101'413.09 58'481.61 Depreciation & amortisation on non-current assets -151'201.12-146'012.18 Other non-cash-related income (-) / expenses Profit (-) / loss from disposal of non-current assets Change in current assets with a market price Change in trade receivables 28'008.40 4'818.59 Change in other short-term receivables & accrued income -29'491.84-9'976.11 Change in inventories and non-invoiced services -153'000.00-95'000.00 Change in trade payables 408'121.67 211'187.62 Change in other short-term liabilities & accrued expenses 3'249.83-108'233.26 Change in other long-term liabilities Change in provisions -218'018.00-169'452.00 Cashflow from operating activities -213'744.15-254'185.73 Investments in tangible assets -155'601.12-140'212.18 Disinvestments of tangible fixed assets Investments in financial assets Disinvestments of financial assets Investments in intangible assets Disinvestments of intangible assets Cashflow from investing activities -155'601.12-140'212.18 Cashinflow from capital increase (incl. premium) Dividends paid to shareholders Cashinflow from short-term interest bearing liabilities Cashoutflow from short-term interest bearing liabilities Cashinflow from long-term interest bearing liabilities Cashoutflow from long-term interest bearing liabilities Purchase of treasury shares Sale of treasury shares Cashflow from financing activities Change in net cash and cash equivalents -369'345.27-394'397.91 Verification: Cash and cash equivalents as at 1 January 353'976.16 456'349.71 Currency differences on cash items Cash and cash equivalents as at 31 December 287'033.13 353'976.16 Change in net cash and cash equivalents -66'943.03-102'373.55-6 -
1 Summary of significant accounting policies Accounting principles The accounting principles applied preparing these financial statements are in accordance with the provisions of the Swiss accounting law (chapter 32 of the Code of Obligations), in particular with the articles of the Code of Obligations about accounting and financial reporting (article 957 to article 962). When preparing financial statements, the Board is required to make estimates and assumptions that could affect the reported amounts of assets, liabilities and contingent liabilities at the balance sheet date, as well as income and expenses for the reporting period. The Board shall decide in each case in its sole discretion on the use of existing legal valuation and accounting scope. In line with the concept of prudence, depreciation, amortization and provisions can be recorded above the economically required extent to secure the on-going prosperity of the company. These financial statements have been prepared on the historical cost basis unless indicated otherwise and the Board believes that the company will continue as going concern for the foreseeable future. Comparative information has been presented also using the same accounting policies. Receivables Trade receivables and other receivables are recorded at nominal value, less economically necessary individual specific valuation allowance. Additionally, a lump-sum valuation allowance [of?%] is recorded. Inventories and non-invoiced services Inventories and non-invoiced services are stated at acquisition respectively at manufacturing costs. If net realizable value at the balance sheet date is lower than the acquisition value, this lower value is recorded. Moreover, in agreement with tax laws a lump-sum valuation allowance is recorded on inventories. The determination of the cost is based on the average cost method, the production costs include direct material and labor costs. Securities an financial assets Short-term securities are valued at market price at the balance sheet date less a fluctuation reserve [ALTERNATIVE: at lower of cost or market]. Financial assets include long-term held securities without any market price respectively without observable market value as well as long-term receivables and loans. They are accounted for at most at cost less any impairment required. Tangible assets Tangible assets are stated at cost less accumulated depreciation and any impairment losses. Property plant and equipment, except land, are depreciated according to the declining balance method [ALTERNATIVE: straight-line method]. Upon the existence of specific hints of an impairment, the carrying values are reassessed and adjusted if necessary. Liabilties Liabilities are basically stated at nominal value. Foreign-currency translation Foreign currency transactions are translated into using the exchange rates prevailing at the date of the transactions. Assets and liabilities denominated in foreign currencies at the reporting date are retranslated to the functional currency at the exchange rate at that date [ALTERNATIVE: at rates published by Swiss tax authorities]. Foreign currency differences arising on retranslation are recognised in the profit and loss statement. - 7 -
2 Information, breakdowns and explanations relating to individual financial statement line items 2.1 Cash and cash equivalents Cash on hand 1'667.75 2'796.90 Cash at banks 186'002.53 251'756.66 Call deposits 99'362.85 99'422.60 Total cash and cash equivalents 287'033.13 353'976.16 2.2 Currrent assets with a market price Money market funds: EUR USD AUD Fluctuation reserve Total Money market funds Bonds and similar instruments: EUR USD AUD Fluctuation reserve Total bonds and similar instruments Shares and similar instruments: EUR USD AUD Fluctuation reserve Total shares and similar instruments: Total current assets with a market price - 8 -
2.3 Trade receivables Trade receivables from third parties 574'139.01 634'147.41 Trade receivables from subsidiaries Trade receivables from shareholders & company organs Trade receivables from related parties./. Valuation allowance on trade receivables -56'000.00-88'000.00 518'139.01 546'147.41 2.4 Other short-term receivables Other short-term receivables from third parties Other short-term receivables from subsidiaries Other short-term receivables from shareholders & company organs Other short-term receivables from related parties Other short-term receivables from public authorities 311.33 273.70 Other short-term receivables social security 0.00 5'805.25 Sundry short-term receivables 311.33 6'078.95 2.5 Inventories and non-invoiced services Trade goods 2'275'000.00 2'092'000.00 Raw material Supplies Finished goods 279'000.00 232'000.00 Semi-finished goods Work in progress Non-invoiced services./. Valuation allowance -851'000.00-774'000.00 1'703'000.00 1'550'000.00 2.6 Accrued income and prepaid expenses Prepayments Accrued income third parties Accrued income subsidiaries Accrued income shareholders & company organs Accrued income related parties 80'778.70 60'260.74 14'741.50 0.00 95'520.20 60'260.74-9 -
2.7 Financial assets Securities Loans receivable from third parties Loans receivable from subsidiaries Loans receivable from shareholders & company organs Loans receivable from related parties Other financial assets./. Valuation allowance on financial assets 2.8 Movable tangible assets Machinery and equipment Furnitures and fixtures Office machines and computer systems Vehicles Tools and appliances Storage equipment Other movable tangible assets./. Accumulated depreciation 714'800.00 683'500.00 3'100.00 3'000.00 54'300.00 67'000.00 27'100.00 33'900.00 36'601.00 44'101.00 1.00 1.00 835'902.00 831'502.00 2.9 Immovable tangible assets Buildings Fixtures and fittings Other immovable assets./. Accumulated depreciation Land 2.10 Intangible assets Patents and formulas Trademarks Licences, concessions and rights Developments Other intangible assets./. Accumulated depreciation - 10 -
2.11 Trade payables Trade payables against third parties Trade payables against subsidiaries Trade payables against shareholders & company organs Trade payables against related parties Prepayments from customers 1'406'919.41 998'797.74 1'406'919.41 998'797.74 2.12 Short-term interest bearing liabilities Short-term bank liabilities Short-term interest bearing liabilities against third parties Short-term interest bearing liabilities against subsidiaries Short-term interest bearing liabilities against shareholders Short-term interest bearing liabilities against company organs Short-term interest bearing liabilities against related parties Short-term part of long-term interest bearing liabilities 2.13 Other short-term liabilities Other short-term liabilities against public authorities Other short-term liabilities against third parties Other short-term liabilities against subsidiaries Other short-term liabilities against shareholders & company organs Other short-term liabilities against related parties Other short-term liabilities against social security Other short-term liabilities against pension fund 33'954.26 33'789.55 241'566.80 56'721.65 275'521.06 90'511.20 2.14 Accrued expenses / deferred income Accrued expenses Accrued expenses subsidiaries Accrued expenses shareholders & company organs Accrued expenses related parties Deferred income Accrual for taxes 94'957.28 276'717.31 94'957.28 276'717.31-11 -
2.15 Short-term provisions Provision for guarantees Provision for renovation of tangible assets Restructuring provisions Provision for the secured development of the company Provision for overtime and holidays Other short-term provisions 0.00 78'000.00 100'925.00 116'243.00 0.00 4'700.00 100'925.00 198'943.00 2.16 Long-term interest bearing liabilities Long-term bank liabilities Lease liabilities Mortgages Loans payable to third parties Loans payable to subsidiaries Loans payable to shareholders & company organs Loans payable to related parties 2.17 Other long-term liabilities Long-term liabilities against third parties Long-term liabilities against subsidiaries Long-term liabilities against shareholders & company organs Long-term liabilities against related parties Other long-term liabilities 1'290'576.37 1'290'576.37 1'290'576.37 1'290'576.37 Maturity of long-term liabilities: Within one to five years After five years 1'290'576.37 1'290'576.37 1'290'576.37 1'290'576.37-12 -
2.18 Provisions and similar items required by law Provision for guarantees Provision for renovation of tangible assets Restructuring provisions Provision for the secured development of the company Other long-term provisions 0.00 120'000.00 0.00 120'000.00 2.19 Net income from sales of goods and services Gross income from sales of goods Gross income from sales of services Income from freight and packaging Other income./. Sales deductions Change in valuation allowances on trade receivables 6'852'358.92 6'485'132.01 9'401.85 28'586.34 86'689.81 359'775.01-50'067.75-48'240.79 31'449.60-52'034.24 6'929'832.43 6'773'218.33 2.20 Material expenses Material costs Third-party services Direct purchasing charges./. Deductions on purchase prices Foreign exchange gains / losses (-) -2'301'240.20-231'729.84-52'181.07 2'350.84 2'078.69-2'580'721.58-1'872'400.69-332'703.20-41'025.48 1'637.65-6'162.57-2'250'654.29 2.21 Personnel expenses Salaries Payroll taxes Daily allowances Other personnel expenes Services from third parties -2'892'468.75-459'833.27 10'220.45-37'331.75-16'999.83-3'396'413.15-2'703'578.75-449'459.32 16'684.70-40'863.18-51'117.09-3'228'333.64 Number of full time equivalent employees The annual average number of full time equivalent employees is as in prior year not higher than 50. - 13 -
2.22 Depreciation and amortisation on non-current assets Depreciation on movable tangible assets -30'000.00-100'000.00 Depreciation on immovable tangible assets -75'00 Amortisation on intangible assets -46'201.12-46'012.18-151'201.12-146'012.18 2.23 Impairments on non-current assets Impairments on financial assets Impairments on movable tangible assets Impairments on immovable tangible assets Impairment on intangible assets 2.24 Financial income Income from cash and cash equivalents 183.17 501.56 Income from securities Income from financial assets Financial income from subsidiaries Financial income from shareholders & company organs Foreign exchange gains Other financial income 183.17 501.56 2.25 Financial expenses Interest expenses on liabilities against third parties Interest expenses on liabilities against subsidiaries Interest expenses on liabilities against shareholders Interest expenses on liabilities against company organs Interest expenses on liabilities against related parties Interest expenses on liabilities against pension fund Foreign exchange losses Other financial expenses -817.15-779.94-7'366.55-12'949.20-8'183.70-13'729.14-14 -
3 Net release of hidden reserves Net amount of released hidden reserves 4 Details of significant direct and indirect participations [COMPANY NAME, LEGAL FORM, REGISTERED OFFICE] Share capital: [AMOUNT] [AMOUNT] Capital interest: 0.00% 0.00% Voting interest: 0.00% 0.00% Book value as at 31 December [COMPANY NAME, LEGAL FORM, REGISTERED OFFICE] Share capital: [Amount] [AMOUNT] Capital interest: 0.00% 0.00% Voting interest: 0.00% 0.00% Book value as at 31 December 5 Share Capital The share capital consists of [NUMBER] shares with a nominal value of [VALUE] each and paid in full. 6 Number of treasury shares Number Number Treasury shares [X]% of [TOTAL SHARES] 0 0 Purchase / sale of treasury shares Stock at the beginning of the year Purchase of [NUMBER OF SHARES] for a purchase price of [SHARE P Sale of [NUMBER OF SHARES] for a sales price of [SHARE PRICE] Stock at balance sheet date 0 0 7 Lease and similar obligations not recorded in the balance sheet Lease obligations with maturity > 1 year Long-term rent obligations with maturity > 1 year Other similar obligations with maturity > 1 year - 15 -
8 Total amount of securities, guarantees and pledges in favour of third parties [TEXT] 9 Total amount of securities and pledges for own liabilities as well as assets under retention of title Pledged assets Assets under retention of title 10 Contingent liabilities [TEXT] 11 Participation rights and options for company organs and employees The company has allocated the following participation rights and options in the resepctive year: to Board members: [NUMBER] [NUMBER] to Management: [NUMBER] [NUMBER] to other employees: [NUMBER] [NUMBER] 0 0 12 Explanations of extraordinary, non-recurring and prior year related elements [DESCRIPTION OF TOPIC 1] [DESCRIPTION OF TOPIC 2] [DESCRIPTION OF TOPIC 3] [DESCRIPTION OF TOPIC 4] -77'000.00-47'000.00 159'500.00 515.92 12'138.65 0.00 94'638.65-46'484.08 13 Significant subsequent events The company's Board of Directors approved these financial statements on [DATE]. No significant events occurred between the end of the reporting period and the date of approval by the Board of Directors, which would result in an adjustment of these financial statements or require their disclosure at this point. - 16 -
Appropriation of available earnings Profit brought forward 222'419.64 163'938.03 Loss / Profit for the year -101'413.09 58'481.61 Available earnings 121'006.55 222'419.64 The Board of Directors proposes to the General Meeting of shareholders the following appropriation of available earnings: Payment of a dividend in the amount of Transfer to the legal earnings reserve Transfer to the unrestricted reserves To be carried forward 121'006.55 222'419.64 121'006.55 222'419.64-17 -