Matth. Hohner AG

Notes to the Consolidated Financial Statements for Business Year 2010/2011
5. Inventories
The Group value of inventories decreased during the business year 2010/2011 from TEUR 18,044 by
TEUR 358 to TEUR 17,686. The total amount of all of the write downs on inventories totaled TEUR 4,444
(prior year: TEUR 3,918). As a result, net inventories decreased by TEUR 884 from TEUR 14,126 to
TEUR 13,242.
The change in write-downs for inventories that was recorded as expense (prior year: income) totals TEUR
526 (prior year: TEUR 384) and was posted to the cost of materials or change in inventories. Due to product
readjustments and the market situation the valuation allowance increased in business year.
On the balance sheet date, inventories in the amount of TEUR 4,675 (prior year: TEUR 3,515) were used to
secure liabilities to banks.
6. Trade receivables and other receivables
Trade receivables and other receivables (current)
Trade receivables and other current receivables are interest-free and are generally due within 30–90 days. Bad
debt allowances were recorded on the basis of past experience. In this amount income tax receivables have
not been taken into account.
The following table states the extent of credit risks included in trade receivables:
in TEUR Gross value
March
31, 2011
Trade
receivables
in TEUR Gross value
March
31, 2010
Trade
receivables
Receivables
with specific
bad debt
allowances
Receivables neither
overdue nor with
specific bad debt
allowance
Overdue receivables
without specific bed
debt allowance
less than
30 days
thereof: without specific bad debt
allowance and overdue
within the following time ranges:
31 to 90
days
91 and more
Days
7,289 705 5,830 754 473 189 92
Receivables
with specific
bad debt
allowances
Receivables neither
overdue nor with
specific bad debt
allowance
Overdue receivables
without specific bed
debt allowance
weniger als
30 Tage
thereof: without specific bad debt
allowance and overdue
within the following time ranges:
31 bis 90
Tage
91 Tage und
mehr
6,790 287 5,653 850 631 219 0
The credit-worthiness of our customers is checked continuously and credit limits are adjusted accordingly, so
that the identification and assessment of bulky risks is ensured at an early stage. For 11 (prior year: 8) debtors
the account balance was more than TEUR 100 as at March 31, 2011. For these customers the Group considers
the default risk to be not probably.
In the process of the assessment of the recoverability of trade receivables, every change in credit-worthiness
since the date of granting the term of payment until the balance sheet date is taken into account.
Material bad debt allowances, that need to be stated for IFRS 7-category “Loans and receivables” are made
for trade receivables as well as other receivables within HOHNER Group; apart from that allowances only play
a minor role.
The account for bad debt allowances as a whole developed as follows:
in TEUR 2010/2011 2009/2010
Bad debt allowance as at April 1 213 253
Exchange rate differences -2 0
Change of specific bad debt allowance 287 -78
Change of general bad debt allowance 146 38
Bad debt allowance as at March 31 644 213
There was no bad debt allowance for trade receivables in the amount of TEUR 754 (prior year: TEUR 850),
that were overdue as at balance sheet date, since no material changes in the creditworthiness of the debtors
concerned was assessed and the repayment of the outstanding amounts is therefore expected.
For those receivables without bad debt allowance, that are not overdue, in the amount of TEUR 5,830
(prior year: TEUR 5,653), the creditworthiness of debtors is ensured and payment receipt for the outstanding
receivables is expected.
A valuation allowance at an amount of TEUR 276 was made in the reporting year for a supplier who is also a
customer of the group due to price and quality issues.
On the balance sheet date, trade receivables in the amount of TEUR 2,557 (prior year: TEUR 2,456) were used
to secure liabilities to banks – exactly an overdraft credit with an interest rate of 3 %. The credit line will be
granted for now up to August 30, 2011.
Notes to the CoNsolidated FiNaNCial statemeNts Notes to the CoNsolidated FiNaNCial statemeNts
89