Honkarakenne Oyj - Company Announcement

HONKARAKENNE OYJ’S AUDITOR’S REPORT 2015

HONKARAKENNE OYJSTOCK EXCHANGE RELEASE24 March 2016 at 5:30 p.m.
HONKARAKENNE OYJ’S AUDITOR’S REPORT 2015
Auditor’s report 2015 as a whole is published in this release.In addition to
the standard format text the report includes additional information related to
emphasizing matters. 


Auditor’s Report (Translation from the Finnish Original)
To the Annual General Meeting of Honkarakenne Oyj

We have audited the accounting records, the financial statements, the report of
the Board of Directors and the administration of Honkarakenne Oyj for the year
ended 31 December 2015. The financial statements comprise the consolidated
statement of financial position, 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 whether they
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. 

We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our audit opinion. 



Opinion on the Consolidated Financial Statements

In our opinion, the consolidated financial statements give a true and fair view
of the financial position, financial performance, and cash flows of the group
in accordance with International Financial Reporting Standards (IFRS) as
adopted by the EU. 

Opinion on the Company’s Financial Statements and the Report of the Board of
Directors 

In our opinion, the financial statements and the report of the Board of
Directors give a true and fair view of both the consolidated and 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 information in the report
of the Board of Directors is consistent with the information in the financial
statements. 

Emphasis of matters

We draw attention to the Directors’ Report and Note 28 in the financial
statements according to which it is possible that the company’s covenant term
is breached during the first half of the year if the company’s sales do not
develop as expected. The company is planning measures to safeguard the
continuity of operations and the company has started negotiations with the
banks and possible other financiers to obtain new financing. 

We also draw attention to the Directors’ Report and Note 28 in the financial
statements according to which deferred tax assets include 1,6 million euro
relating to tax loss carry forwards. According to Honkarakenne Oyj management
the deferred tax assets can be utilised against estimated taxable income based
on Honkarakenne Oyj business plans and budgets. If the company’s result does
not develop as expected it is possible that the tax assets cannot be utilised
before expiration and have to be written down. Our opinion is not qualified in
respect of these matters. 

Helsinki 24 March 2016

PricewaterhouseCoopers Oy
Authorised Public Accountants


Maria Grönroos
Authorised Public Accountant


 
Honkarakenne OyjMarko Saarelainen
President and CEO
 
Further information: 
Marko Saarelainen, President and CEO, tel. +358 40 542 0254,
marko.saarelainen@honka.com 
or
Mikko Jaskari, CFO tel. +358 400 535 337, mikko.jaskari@honka.com
 
 
DISTRIBUTION
 
NASDAQ OMX Helsinki
Key media
Financial Supervisory Authority
www.honka.com