JSC “VEF Radiotehnika RRR” Audited Interim Report year 2017, the Auditor‘s opinion, Comply/Explain Report on Good corporate governance principles

Management report

Types of activity

 

The main activities of AS “VEF Radiotehnika RRR” in 2017 were:                                                                                               

1.   Real estate renting services;                                    

2.    Manufacturing of  acoustic systems; purchase and sale of their enclosures.                                                          

When compared with the previous reporting period, no new main activities have been included.

 In the future ,it is planned to restore acoustic systems development, organization of production and sales.

                                                                     

Operations of the Company during the reporting year

 

Reporting year results of the Company are the following:                                                                                                                             

      Result before extraordinary items and taxes:                           1224 950 EUR                        

      Net result:                                                                                1 224 950 EUR                                                                       

                                                                                                                     

In 2017, net turnover amounted to 788, 941 EUR which is 19,5 % less when  compared to 2016.  On  31 December 2017, similarly to 31 December 2016,  the Company‘s current  assets exceeded its short-term liabilities by 87,120 EUR.     

 

Post balance sheet events

On 9 January 2018, the extraordinary meeting of shareholders of JSC’’VEF Radiotehnika RRR” decided to reduce the equity capital of the Company, the meeting also approved the rules for equity capital reduction and the amendments to the Articles of Association of the Company by specifying the reduced equity capital. The equity capital of the Company is reduced by EUR 3,313,809,20. The equity capital is reduced in accordance with Section 262, Paragraph one, Clause 3 of Commercial Law-by reducing the nominal value of stock of the Company. Following the reduction, the Company`s equity is EUR 254,908.40.