Annual Report 2007 - Muehlhan AG

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74 Default risk default or credit risks exist when contractual partners do not meet their obligations. Muehlhan regularly analyzes the creditworthiness of every significant debtor and sets credit limits on this basis. due to the Muehlhan Group’s global activities and diverse client base, there are no significant concentrations of default risks. the book value of all financial assets plus the nominal values of contingencies without potential warranty obligation represents the maximum default risk of the Muehlhan Group. to the extent that default risks are foreseeable for financial assets, they are reflected by value adjustments. Interest rate risk Some 95% of the financial liabilities of the Group carry a long-term fixed interest rate. thus the Group does not face a noteworthy interest rate risk. Liquidity risk risks from cash flow fluctuations are detected early by liquidity planning systems. the issuance of the loan and new shares in 2006 has improved the liquidity situation of the Group on a sustained basis. Currency risk almost 60% of the revenues of the Group are generated in Euros or in the danish krone, which scarcely fluctuates in relation to the Euro. the remaining revenues generated in foreign currencies are essentially matched by costs in the same currency, so that currency risk from operations is restricted to the profit contribution of the corresponding companies. the Group does not hedge this risk. overall, foreign currency losses attributable to the strong Euro reduced the Group’s net income in 2007 by a total of Eur 2.1 million. Most of this amount results from loan financing provided by the parent company for subsidiaries in the foreign exchange zone. the primary currencies responsible for losses at Group level are the uS dollar (Eur 1.0 million), the united arab Emirates dirham, the Qatari rial (Eur 0.4 million) and the british pound (Eur 0.3 million). by virtue of the Group’s altered financial structure, the impact of future exchange rate fluctuations on the income statement is expected to be sharply reduced as of 2008. Hamburg, 26 March 2008 the Executive board
Statement of the Auditors´ Report * „Auditors´ Report (Free translation of the original German Auditors´ Report) We have audited the consolidated financial statements prepared by Muehlhan AG, Hamburg, comprising the balance sheet, the income statement, statement of changes in equity, cash flow statement and the notes to the consolidated financial statements, together with the group management report for the financial year from 1 January 2007 to 31 December 2007. The preparation of the consolidated financial statements and the group management report in accordance with IFRSs as adopted by the EU, and the additional requirements of German commercial law pursuant to § 315a Abs. [paragraph] 1 HGB and supplementary provisions of the articles of incorporation are the responsibility of the parent company’s management. Our responsibility is to express an opinion on the consolidated financial statements and on the group management report based on our audit. In addition we have been instructed to express an opinion as to whether the consolidated financial statements comply with full IFRS. We conducted our audit of the consolidated financial statements in accordance with § 317 HGB and German generally accepted standards for the audit of financial statements promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Those standards require that we plan and perform our audit such that misstatements materially affecting the presentation of the net assets, financial position and results of operations in the consolidated financial statements in accordance with the applicable financial reporting framework and in the group management report are detected with reasonable assurance. Knowledge of the business activities and the economic and legal environment of the Group and expectations as to possible misstatements are taken into account in the determination of audit procedures. The effectiveness of the accounting-related internal control system and the evidence supporting the disclosures in the consolidated financial statements and the group management report are examined primarily on a test basis within the framework of the audit. The audit includes assessing the annual financial statements of those entities included in consolidation, the determination of entities to be included in consolidation, the accounting and consolidation principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements and the group management report. We believe that our audit provides a reasonable basis for our opinion. Our audit has not led to any reservations. In our opinion, based on the findings of our audit, the consolidated financial statements comply with IFRSs as adopted by the EU, the additional requirements of German commercial law pursuant to § 315a Abs. 1 HGB and supplementary provisions of the articles of incorporation and full IFRS and give a true and fair view of the net assets, financial position and results of operations of the Group in accordance with these requirements. The group management report is consistent with the consolidated financial statements and as a whole provides a suitable view of the Group’s position and suitably presents the opportunities and risks of future development.“ Hamburg, 26 March 2008 * Translation of the German Auditors´ Report BDO Deutsche Warentreuhand Aktiengesellschaft Wirtschaftsprüfungsgesellschaft (Rohardt) Wirtschaftsprüfer (ppa. Armbrecht) Wirtschaftsprüfer 75
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Annual Report 2007
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The Group is represented locally in
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Content 2 ManageMent 2 Foreword 5 E
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Executive Bodies executive board Dr
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One is successful not primarily as
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Continued and consistently good bus
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ManaGeMent divisions share Group Ma
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The marine markets are interconnect
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Annual Report 2007 - Muehlhan AG

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