Imoniu grupe ALITA, AB - Notification on material event

Re the decision of Securities Commission of the Republic of Lithuania

Notification on material event

Alytus, Republic of Lithuania., 2011-01-10 14:02 CET (GLOBE NEWSWIRE) -- Imoniu
grupe ALITA, AB, code 302444238, address Miškininkų g. 17, LT-62200, Alytus,
Republic of Lithuania. 

The decision of Securities Commission of the Republic of Lithuania regarding
the case on infringement No. 12K - 23. 

The Securities Commission of the Republic of Lithuania (further - the
Commission) has conducted the inspection of the consolidated and company
financial statements of Imoniu grupe ALITA, AB for 2009 and has resolved that
consolidated and company financial statements of Imoniu grupe ALITA, AB do not
comply with certain requirements of International Accounting Standards (further
- IAS), as provided further: 

(a)    with requirements of paragraph 60 of the 1 IAS “Presentation of
Financial Statements” - i.e. that long term and short term liabilities are not
treated as required by IAS in the consolidated and company financial statement
of Imoniu grupe ALITA, AB; 

(b)   with requirements of paragraph 29 of the 16 IAS “Property, plant and
equipment” - i.e. that the property, plant and equipment are not accounted as
required by IAS in the consolidated and company financial statements; 

(c)    with requirements of paragraph 63 of the 39 IAS “Financial Instruments:
Recognition and Measurement” - i.e. that company's future cash flows
(receivables from related entities) are not evaluated at present value
discounted at actual interest rate of this financial asset in the company
financial statement; and with requirements of paragraph 9 of the 36 IAS
“Impairment of Assets” - i.e. that investments of Imoniu grupe ALITA, AB into
its subsidiaries are not evaluated at the recoverable amount in company
financial statement. 

Imoniu grupe ALITA, AB was issued a warning.

The management of the company draws the attention that in its opinion:

(a) the requirements of 1 IAS are related to the circumstances which the
company could not completely evaluate during the preparation of financial
statements for 2009 due to the fact that the company did not know the actual
position of the bank regarding the amendment of the terms and condition of the
loans. The company has informed on the negotiations with bank in its
notifications on material events dated 9 December 2010 and 22 December 2010. In
addition, in the opinion of the management, this circumstance and it's impact
on the financial statements was properly disclosed in the independent auditor's
report regarding consolidated and company financial statements for 2009 and
also in the financial statements for 2009. 

(b) long term assets (property, plant and equipment) for 31 December 2009 are
accounted without infringing the requirements of 16 IAS, i.e. according to the
paragraphs 31 and 32 of 16 IAS, by presenting the real value according to
evaluation report. However, the company have not indicated that assets are
accounted according to paragraphs 31 and 32 of the 16 IAS in section “Property,
plant and equipment” of the annual statement. Therefore, in its annual report
for 2010, the company will indicate that property, plant and equipment are
accounted according to paragraphs 31 and 32 of 16 IAS; 

(c) requirements of 36 IAS and 39 IAS are related to various circumstances,
including UAB “A.L.D”, the subsidiary of Imoniu grupe ALITA, in respect of
which, as it was already announced, the bankruptcy proceedings are initiated
(this circumstance was not known during the preparation of the financial
statements for 2009). Therefore, the company will additionally evaluate these
circumstances and its impact and will disclose this information together with
the results for 2010. In addition, in the opinion of the management, these
circumstances and their impact on the financial statements were properly
disclosed in the independent auditor's report regarding company financial
statements for 2009. 

In the opinion of the management it is not possible to immediately calculate
and evaluate the impact of the circumstances indicated by the Commission on the
financial statements for 2009 and therefore the company will conduct the
evaluation of the impact of these circumstances during the preparation of the
financial statements for the year 2010 and will retrospectively correct the
financial statements for 2009 and will announce this publicly together with the
financial statements for 2010 by 30 April 2011 (inclusively). 

The decision of the Commission may be appealed to the Vilnius District
Administrative Court within one month since the day of the receipt. 


         General director
         Paulius Kibiša,
         tel.(+370 315 57243)