The Management Board of P.R.I. „POL-AQUA” S.A. hereby makes public the contents of answers provided pursuant to art. 428 of the Commercial Companies Code to the questions posed at the General Shareholders Meeting on 21.06.2011 by the proxy of DIM S.a.r.L. shareholder – ALTUS TFI S.A.
The Company created depreciation write-offs for borrowings amounting to mPLN 9 as well as write-offs for receivables amounting to mPLN 77. Since the majority of contracts is executed in favour of the State Treasury, why these write-offs?
Answer: the revaluation write-off in the amount of kPLN 9,102 concerns borrowings granted to subsidiaries – the information in the Note 13.5 to the individual financial statements of P.R.I. „POL-AQUA” S.A. for the year ended December 31, 2010. The receivables write-offs executed in 2010 in the amount of mPLN 77 concern private contractors, including subsidiaries – the information in the Note 13.3 to the individual financial statements of P.R.I. „POL-AQUA” S.A. for the year ended December 31, 2010.
In the scope of engineering and general construction, the Company recorded a loss, while other competitive entities on the marked did not. What are the reasons for the loss on the said business? Which contracts the loss relates to?
Answer: the net loss of the Company and POL-AQUA Group stems both from unsatisfactory margins realised on many contracts signed in preceding years, as well as a number of executed revaluation write-offs, including for receivables and goodwill. In the case of many contracts, their budgeted costs of execution were underestimated. Furthermore, also subsidiaries such as Vectra S.A. and PA Conex Sp. z o.o. suffered substantial net losses.
Similar question as regards write-offs on fixed assets for 2010: what these write-offs comprise and why such a high amount? On what basis the write-offs were performed (namely the basis for fixed assets write-offs and write-offs on value of shares in affiliates in 2010)?
Answer: the write-off of the remaining fixed asset’s value in the amount of kPLN 8,437 concerned buildings and structures, transportation means and fixed assets under construction, whose book value was higher than the market value. The information is contained in Notes no. 13.3 and no. 18 to the individual financial statements of P.R.I. “POL-AQUA” S.A. for the year ended December 31, 2010.
Similar situation is the case as regards write-offs on value of shares in affiliates?
Answer: revaluation write-off on shares in affiliates in the amount of kPLN 3,294 concerned PKO BP Inwestycje Sarnia Dolina Sp. z o. o. company and stemmed from the business condition of the company. The information is contained in Note no. 13.5 to the individual financial statements of P.R.I. “POL-AQUA” S.A. for the year ended December 31, 2010.
Adjustment of errors from preceding years. In what way the Company performed these adjustments and what is the reason of the changes?
Answer: during preparation of the statements for 2010, errors were identified which related to events of 2009 and earlier years. In accordance with IAS 8, adjustment of error from preceding years is not recorded in the income statement for the period in which the error was detected. All presented information related to the earlier periods are adjusted from the most early of possible periods. The identified errors related to 2009 were attributed to the comparable data of the income statement for the period from 01.01.2009 to 31.12.2009, while errors committed in periods preceding 2009 were attributed in the balance-sheet to the result of preceding years. The error adjustment attributed to the financial result for 2009 totalled kPLN 36,488. The detailed description of the error adjustment is contained in the Note no. 10 to the individual financial statements P.R.I. “POL-AQUA” S.A. for the year ended December 31, 2010.
The Company performed changes in the scope of revenues and costs – what were the reasons for this and why this took place in the context of new contracts’ prospecting?
Answer: in 2010, the Company did not execute any changes in the scope of revenues and costs from sales, with the exception of costs and revenues presentation changes in the case of contracts executed in consortiums not controlled independently by the Company. As it was described in Note no. 10 to the individual financial statements of P.R.I. „POL-AQUA” S.A. for the year ended December 31, 2010, the presentation of other operating costs and revenues was changes, and also financial revenues and costs in the form of netting thereof.
What was the situation as regards the independence of the Supervisory Board’s members, who are independent members of the Supervisory Board and do the independent members of Supervisory Board meet the independence criteria?
Answer: Mr Krzysztof Gadkowski and Mr Janusz Steinhoff are independent members of the Supervisory Board. They were appointed in 2010. On the day of appointing them, the members of the Supervisory Board fulfilled the criteria for independent members of the Supervisory Board and according to the best knowledge of the Company, nothing has changes since the day of the appointment.