« Back to list of reports
Commentary made by the Independent Auditor, representing the Chancellery of the Chartered Accountants "Konto" Spółka z oo.o. in Cracow the position for the financial statement of Alma Market SA in the restructuring (the "Company") for 2016.
Report number: RB 55/2017 Report created: 2017-06-01
The auditor's position, the Company assesses in many respects as incompatible with the actual state of affairs.
The Company points out that in November 2016 the composition of the Company's Management Board and the Chief Accountant was changed, while the Certified Auditor representing the Company "Konto" Company
with o.o. In Cracow, he has been conducting research in the Company for many years and has familiarized with the procedures that operate in the Company, which have not changed.
The Company is aware of its own difficult situation, which puts the auditor in an uncomfortable position, but does not agree with the objections raised in its position, which the Company published together with the adjustment of the Standalone Financial Statements for 2016 on 27 April 2017.
The Company submits that during the period from March 14, 2017 to April 27, 2017, the Company's employees were in constant contact with the Chartered Accountant, available even outside the days
and working hours and interested in the course of the audit of the financial statements.
The auditor notified by letter dated March 31, 2017, that the opinion and report will be forwarded no earlier than April 27, 2017, until April 25, 2017. We did not receive any negative information or comments regarding the irregularities in the procedures for drawing up financial statements.
Referring to the statutory auditor's position, the Company states that:
1. Prolonged court proceedings related to the completion of the restructuring process (redeeming sanctions) are likely to continue for a further 12 months.
2. The revaluation write-downs on fixed assets and equipment are included in the financial statements.
3. The auditor has been presented 3 valuation of real estate, the value of which was used in the financial statement for 2016. The remainder was not available because they concerned real estate valuation, fixed assets and equipment for possible sale. This also applies to Item 9 of the auditor's objections.
4. The inventory schedule for 2016 has been forwarded to the Auditor. According to the timetable in the period 05.01.2016 - 30.06.2016, in all operating shopping facilities, partial inventories were carried out and in three stores: Warsaw Ferio, Warsaw Vogla and Warsaw Jutrzenki. Inventory (inventory by nature) has been carried out by external companies for several years under the supervision of the Company's internal control office. None of the above inventory was representative of the auditor's office.
Due to the reduction of costs in the difficult financial situation of the Company, as well as the closure of stores, inventories were canceled, whose deadlines ranged from 01.10.2016 to 08.11.2016 with the possibility of conducting them in the month of December,
in operating objects. Here are some examples of the reasons for this decision:
Nowy Targ ceased its activity on 29.09.2016, and the inventory was scheduled for 25.10.2016,
Warsaw Wilanów ceased operations on 23.10.2016 and the inventory was scheduled for 23.10.2016.
Jutrzenki Warsaw ceased its activity on 29.09.2016 and the inventory was scheduled for 18.10.2016.
Warsaw Bemowo ceased its activity on 29.10.2016 and the inventory was scheduled for 06.11.2016.
At the same time, we also inform that the goods from the closed shops were recalculated by the Company's employees and secured for transport. This item was then received by the Company's employees, converted and placed into the warehouse of the taking over of the store with internal documents, and the settlement of the transfer of goods was recorded by the accounting staff. The differences between the bookkeeping status of a lockable store and the actual condition of the goods taken over by the store taking over the goods have been appropriately accounted for as deficiencies or surplus closures.
On 14.12.2016 an inventory was made at the shop in Kraków Modlniczka.
At the end of the year, a list of cash was made in all operating shops: cash, bills and foreign accounts. In all lockout shops, fixed assets were audited by an audit firm employee with a current accounting statement.
5. The lack of revaluation write-offs in 4 objects was justified by well-functioning shops, which the Company did not intend to liquidate. The reason for the liquidation already in 2017 was the immediate termination of the lease.
6. The Company operates procedures of admission (adoption
external and internal contractor) and disposal procedures, including decommissioning, described in detail in the Warehousing Documents Manual. In contrast, the Instruction for Sustainable Property Management specifies, among other things, procedures for the acceptance, liquidation, change of place of use and user of fixed assets, and documents for particular economic events. The above procedures are applied in the company. The documents for the purchase, sale and liquidation of fixed assets were provided to the expert and a detailed table of depreciation of fixed assets (ca.11750 items) for 2016 together with the table of fixed assets movement was provided.
7. The difference between deferred tax assets
We recognize that the difference is significant but lower than the amounts presented in the financial statements: for 2015 - PLN 35 200 thousand. PLN and in the 6 months of 2016 - 34 831 thous. The auditor did not pay attention considering it was correct. This decision was taken to include the above amount
in the report.
Bearing in mind the above, in the opinion of the Company there were no grounds for the auditor to withdraw from the opinion.
