complete financial statement - Buhler Industries Inc.

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Management Discussion & Financial AnalysisCritical Accounting Estimates - continuedImpairment of long-lived assets. On an ongoing basis, the Company estimates the useful life of long-lived assets such as property, plant,equipment and intangible assets. The net carrying value of these assets is determined by providing depreciation and amortization based onthe estimated useful life of each asset. The Company periodically reviews these assets for impairment whenever certain events or changes incircumstances indicate that the net carrying value may not be recoverable, based upon future net cash flows directly associated with the useand possible disposal of the asset. The amount of impairment, if any, is measured by deducting the fair value of the asset from its net carryingvalue and charged to depreciation or amortization expense. Goodwill is reviewed annually for possible impairment. Assumptions and projectionsused in the determination of possible impairment losses, such as future cash flows, may affect the carrying value of goodwill and require animpairment expense.Contingencies and litigation. Should a lawsuit or claim be brought against the Company, management would assesses the potential financialexposure of the Company. In assessing any probable losses, the amount of possible insurance recoveries will be projected. The Companyaccrues such liabilities when a loss becomes probable and the net amount of the loss can reasonably be estimated. Due to the inherentuncertainties relating to the eventual outcome of litigation and potential insurance recovery, certain matters could ultimately be resolved foramounts materially different to provisions or disclosures previously made by the Company.Warranty obligation. The Company has accrued amounts that are expected to be potential future warranty claims. These amounts are based onmanagement’s best estimates based on the Company’s sales and history of past warranty claims. Due to the inherent uncertainty associatedwith these estimates, the actual amount of future claims could be different than the amount accrued. Management believes that the amountsaccrued are reasonable.Disclosure Controls and Internal ControlsDisclosure ControlsManagement is responsible for establishing and maintaining disclosure controls and procedures in order to provide reasonable assurancethat material information relating to the Company is made known to them in a timely manner and that information required to be disclosed isreported within time periods prescribed by applicable securities legislation. There are inherent limitations to the effectiveness of any system ofdisclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures.Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.Based on management’s evaluation of the design and effectiveness of the Company’s disclosure controls and procedures, the Company’s ChiefExecutive Officer and Chief Financial Officer have concluded that these controls and procedures are designed and operating effectively as ofSeptember 30, 2012 to provide reasonable assurance that the information being disclosed is recorded, summarized and reported as required.Internal Controls Over Financial ReportingManagement is responsible for establishing and maintaining adequate internal controls over financial reporting to provide reasonable assuranceregarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with IFRS.Internal control systems, no matter how well designed, have inherent limitations and therefore can only provide reasonable assurance as tothe effectiveness of internal controls over financial reporting, including the possibility of human error and the circumvention or overriding ofthe controls and procedures. Based on management’s design and testing of the effectiveness of the Company’s internal controls over financialreporting, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that these controls and procedures are designedand operating effectively as of September 30, 2012 to provide reasonable assurance that the financial information being reported is materiallyaccurate. During the year ended September 30, 2012, there have been no changes in the design of the Company’s internal controls overfinancial reporting that have materially affected, or are reasonably likely to materially affect, its internal controls over financial reporting.14
Management’s Responsibility for the Financial StatementsThe consolidated financial statements of Buhler Industries Inc. wereprepared by management in accordance with International FinancialReporting Standards applied on a consistent basis. The significantaccounting policies, which management believes are appropriate forthe Company, are described in Note 3 to the financial statements.The financial information contained elsewhere in this Annual Reportis consistent with that in the financial statements.The Board of Directors is responsible for ensuring that managementfulfills its responsibilities for financial reporting and internal control.The Audit Committee of the Board is responsible for reviewing theannual consolidated financial statements and reporting to theBoard, making recommendations with respect to the appointmentand remuneration of the Company’s Auditors and reviewing thescope of the audit.Management is responsible for the integrity and objectivity of thefinancial statements. Estimates are necessary in the preparationof these statements and, based on careful judgments, have beenproperly reflected. Management has established systems of internalcontrol, which are designed to provide reasonable assurance thatassets are safeguarded from loss or unauthorized use and toproduce reliable accounting records for the preparation of financialinformation.Management recognizes its responsibility for conducting theCompany’s affairs in compliance with established financialstandards and applicable laws and maintains proper standards ofconduct for its activities.Yury RyazanovWilly Janzen, C.G.A., B.Comm.Chief Executive Officer Chief Financial OfficerDecember 17, 2012 December 17, 2012Independent Auditors’ ReportTo The Shareholders of Buhler Industries Inc.:We have audited the accompanying consolidated financialstatements of Buhler Industries Inc. and its subsidiaries whichcomprise the consolidated balance sheet as at September30, 2012, September 30, 2011 and October 1, 2010, and theconsolidated statements of comprehensive income, statementsof changes in shareholders’ equity and statements of cash flowsfor the years ended September 30, 2012 and September 30,2011, and a summary of significant accounting policies and otherexplanatory information.Management’s Responsibility for the Consolidated StatementsManagement is responsible for the preparation and fairpresentation of these financial statements in accordance withInternational Financial Reporting Standards, and for such internalcontrol as management determines is necessary to enable thepreparation of financial statements that are free from materialmisstatement, whether due to fraud or error.Auditors’ ResponsibilityOur responsibility is to express an opinion on these financialstatements based on our audit. We conducted our audit inaccordance with Canadian generally accepted auditing standards.Those standards require that we comply with ethical requirementsand plan and perform the audit to obtain reasonable assuranceabout whether the financial statements are free from materialmisstatement.An audit involves performing procedures to obtain audit evidenceabout the amounts and disclosures in the financial statements. Theprocedures selected depend on the auditors’ judgment, includingthe assessment of the risks of material misstatement of thefinancial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevantto the entity’s preparation and fair presentation of the financialstatements in order to design audit procedures that are appropriatein the circumstances, but not for the purpose of expressing anopinion on the effectiveness of the entity’s internal control. An auditalso includes evaluating the appropriateness of accounting policiesused and the reasonableness of accounting estimates made bymanagement, as well as evaluating the overall presentation of theconsolidated statements.We believe that the audit evidence we have obtained is sufficientand appropriate to provide a basis for our audit opinion.OpinionIn our opinion, the consolidated financial statements present fairly,in all material respects, the financial position of Buhler IndustriesInc. and its subsidiaries as at September 30, 2012, September30, 2011 and October 1, 2010 and their financial performanceand their cash flows for the years ended September 30, 2012 andSeptember 30, 2011 in accordance with International FinancialReporting Standards.Winnipeg, ManitobaDecember 17, 2012Chartered Accountants15
Page 1: 2012B u h l e r I n d u s t r i e s
Page 4 and 5: VersatileOne of the most important
Page 6 and 7: Chief Executive Officer’s Message
Page 8 and 9: Management Discussion & Financial A
Page 16 and 17: Consolidated Balance SheetAs at Sep
Page 18 and 19: Consolidated Statement of Cash Flow
Page 20 and 21: Notes to Consolidated Financial Sta
Page 28 and 29: Company InformationAudit Committee
Page 30: Stock DataBuhler (excluding dividen

complete financial statement - Buhler Industries Inc.

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