Annual Financial Statement P&I Personal & Informatik AG April 1 ...

P&I Personal & Informatik Combined Management Report (Group and Cooperation)
conditions in its own organisation. Any allegation of a legal infringement lodged
against P&I, whether justifiable or not, might well have a negative effect on our
reputation and on the share price as well. P&I counters this risk by establishing strict,
formal procedures and by immediately implementing any new or amended basic
conditions in its own organisation.
P&I is confronted with various claims and legal proceedings arising from normal
business dealings. The negative consequences of legal claims made against us or a
process settlement on our part might result in the payment of damages or unwinding
costs as well as bad debts.
We believe that the outcome of these pending processes, both on an individual basis
as well as an overall basis, will not have an adverse effect on our business activities,
as precautionary reserves have been created and specific provisions have been
made.
Employee risks
P&I is a specialist in standard software solutions for HR management. Accordingly,
experts in these areas are also in demand with other software companies.In order to
prevent our staff being “poached“, we enhance our employees' loyalty to the company
through profit-sharing measures, provision of further training, and non-competition
clauses. Furthermore, we make sure that there are several people in each of the
essential areas who possess the requisite expertise for the independent continuation
of the work.
Acquisition risks
P&I has made specific acquisitions in the past and we shall continue to consider
possible purchases for the future. Consequently, the P&I Group is subject to
acquisition risks. The challenges arising here relate to integration in the product
portfolio, the organisational process, the personnel and the different company
cultures. The established integration checking mechanisms that we use will identify
any potential problematic areas, whilst taking into consideration the important sectors
in the acquired company, as quickly as possible.
In the period under review, none of the risks identified and quantified in the context of
P&I’s risk management system reached the threshold level established as an
indication for the existence of inventory risk. The overview shows that the risks P&I is
subject to are limited and manageable. No risks have been identified which could
endanger the continuing existence of the Company, now or in the future.
8. Supplementary report
The following topics have arisen since the balance sheet date:
Our Dutch company, P&I Timemanagment B.V. merged with our other Dutch
company, P&I Personeel & Informatica B.V. on April 1, 2011. The company does not
have any relevant own business and this decision was taken from the point of view of
optimising the Group structures.
Subsequent to the extraordinary AGM an annulment action regarding the closing of
the controlling and profit transfer agreement was lodged before the time limit expired
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