Valoe Oyj - Company Announcement

THE AUDITORS’S REPORT OF VALOE

Valoe Corporation                                                  Stock
Exchange Release          29 April 2016 at 19.55 Finnish time 



THE AUDITORS’S REPORT OF VALOE

Valoe’s auditor has today given his report for the company’s Financial
Statements for 2015. 



AUDITOR’S REPORT

To the Annual General Meeting of Valoe Oyj

We were engaged to audit the accounting records, the financial statements, the
report of the Board of Directors, and the administration of Valoe Oyj for the
year ended 31 December, 2015. The financial statements comprise the
consolidated statement of financial position, income statement, statement of
comprehensive income, statement of changes in equity and statement of cash
flows, and notes to the consolidated financial statements, as well as the
parent company’s balance sheet, income statement, cash flow statement and notes
to the financial statements. 


Responsibility of the Board of Directors and the Managing Director

The Board of Directors and the Managing Director are responsible for the
preparation of consolidated financial statements that give a true and fair view
in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU, as well as for the preparation of financial statements and
the report of the Board of Directors that give a true and fair view in
accordance with the laws and regulations governing the preparation of the
financial statements and the report of the Board of Directors in Finland. The
Board of Directors is responsible for the appropriate arrangement of the
control of the company’s accounts and finances, and the Managing Director shall
see to it that the accounts of the company are in compliance with the law and
that its financial affairs have been arranged in a reliable manner. 


Auditor’s Responsibility

Our responsibility is to express an opinion on the financial statements, on the
consolidated financial statements and on the report of the Board of Directors
based on our audit. The Auditing Act requires that we comply with the
requirements of professional ethics. We conducted our audit in accordance with
good auditing practice in Finland. Good auditing practice requires that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements and the report of the Board of Directors are free from
material misstatement, and whether the members of the Board of Directors of the
parent company or the Managing Director are guilty of an act or negligence
which may result in liability in damages towards the company or have violated
the Limited Liability Companies Act or the articles of association of the
company. 

An audit involves performing procedures to obtain audit evidence about the
amounts and disclosures in the financial statements and the report of the Board
of Directors. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement, whether due to
fraud or error. In making those risk assessments, the auditor considers
internal control relevant to the entity’s preparation of financial statements
and report of the Board of Directors that give a true and fair view in order to
design audit procedures that are appropriate in the circumstances, but not for
the purpose of expressing an opinion on the effectiveness of the company’s
internal control. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of accounting estimates made by
management, as well as evaluating the overall presentation of the financial
statements and the report of the Board of Directors. 

Because of the significance of the matter described in the “Basis for
Disclaimer of Opinion on the consolidated financial statements and consolidated
financial statements information included in the report of the Board of
Directors” section of our report, we have not been able to obtain sufficient
appropriate audit evidence to provide a basis for an audit opinion on the
consolidated financial statements. 


Opinion on the company’s financial statements and the company´s financial
statements information included in the report of the Board of Directors 

In our opinion, the financial statements of Valoe Oyj (parent company) and the
parent company´s financial statements information included in the report of the
Board of Directors, give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations
governing the preparation of the financial statements and the report of the
Board of Directors in Finland. The parent company information in the report of
the Board of Directors is consistent with the information in the financial
statements. 


Basis for Disclaimer of Opinion on the consolidated financial statements and
consolidated financial statements information included in the report of the
Board of Directors 

The section “Financial development” in the report of the Board of Directors
describes both the situation and potential impacts of the Beijing subsidiary to
the consolidated financial position of Valoe. No accounting records have been
kept for the Beijing subsidiary for financial year 2015 for reasons described
in the report by Board of Directors. As a result, we were not able to verify
the correctness of receivables, bank account or debt of the Beijing subsidiary. 


Disclaimer of Opinion

Due to the significance of the matter described in the Basis for Disclaimer of
Opinion, we have not been able to obtain sufficient audit evidence to provide a
basis for an audit opinion. Accordingly, we do not express opinion on the
consolidated financial statements or consolidated financial statements
information included in the report of the Board of Directors. 


Auditor´s remark

The interim report 1.1.-30.6.2015 prepared by the board of directors includes a
revenue of EUR 0.7 million recognized based on a claim raised by Valoe.
Further, the section “Financial development” in the report of the Board of
Directors describes the accounting treatment of both the claim and the related
costs as basis for the claim during financial year 2015. 

In our opinion, the recognized revenue of EUR 0.7 million based on a claim is
not in accordance with IFRS. As described in the report of the Board of
Directors, the tax cost of EUR 0.7 million was recognized in the Beijing
subsidiary in the last quarter of 2015. Taking into consideration the above
mentioned, the cost of EUR 0.7 million should have been included in the interim
report 1.1.-30.6.2015. 

We refer to the Securities Market Act, Chapter 7 section 8 subsection 2 and
make a remark that interim report for the period 1.1.-30.6.2015 has not been
prepared in accordance with the laws and regulations governing the preparation
of the Interim report. 


Emphasis of matter

We draw attention both to the report of the Board of Directors section “Risk
management, Risks and Uncertainties” and to the Note 29 “Financial risk
management”. As described in these paragraphs, the financial situation of the
company is severe and the financing arrangements of the company are unfinished.
As a result, there are significant risks in the adequacy of 12 months financing
and in the ability of the company to continue its operations on a going concern
basis. 

The financial statements of the company are prepared based on a going concern
assumption. If the conditions for going concern cannot be secured, the values
of assets in the financial statements of the company may need to be changed. 



Helsinki, 29 April 2016

KPMG OY AB

(signed)

Petri Kettunen



Valoe will release its annual report and the financial statements for 2015
today on 29 April 2016. 


In Mikkeli 29 April 2016



Valoe Corporation

Board of Directors



For more information:
Iikka Savisalo, President and CEO, Valoe Corporation
Tel. +358 40 521 6082, email: iikka.savisalo@valoe.com



Distribution:
NASDAQ OMX, Helsinki
Main media
www.valoe.com



Valoe Corporation specializes in the clean energy, especially in photovoltaic
solutions. Valoe provides automated production technology for solar modules
based on the company’s own technology; production lines for modules; solar
modules and special components for solar modules. Valoe's head office is
located in Mikkeli, Finland.