Financial Statements for 2008 audited by Baker Tilly

Please click here to download financial statements for 2008 audited by Baker Tilly.

Explanatory comments to audited financials 08

• Financial result  of 2 farms was not included into audit report as corporate rights had been registered in the government institutions
• USD 5.1 mln losses from exchange rate fluctuations were mainly caused by revaluation of EUR 6 mln intra-group loan (USD 9,135 ths. in LT Liabilities)   from parent company (MCB Agricole) to Ukrainian subsidiary “Ukrzernoprom-Agro” after private placement in 2008
• Change in Ukrainian tax legislation led to one-off payment to the state of USD 1,263 ths
• Dramatic drop in prices on commodities in 2008 provoked biological assets and finished goods inventories revaluation on unreasonably low prices
• Increase in PP&E doesn’t show real increase in number of machinery due to exchange rate UAH/USD drop from 5.05 at the beginning of 2008 to 7.70 at the end of 2008. All purchased machinery was accounted on UAH value in the mid of 2008 under rate of 5.05 UAH per 1 USD