A rePort: How is a head- liner actually produced? friedrich ... - polytec

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23. Liabilities from Taxes on Income
Liabilities from taxes on income relate essentially to debt from corporation
tax and municipal trade tax on income (or similar taxes)
in different countries were group companies have their registered
offi ce. Debts developed as follows:
IN TEUR 31.12.2006 31.12.2005
Balance as of 1.1. 2,135.5 7,820.7
Changes in consolidation 0.0 -8.5
Exchange rate differences 5.5 6.0
Use -1,601.4 -7,799.1
Release -514.7 -19.1
Addition 1,663.5 2,135.5
Balance as of 31.12. 1,688.4 2,135.5
24. Other short-term Liabilities
IN TEUR 31.12.2006 31.12.2005
Provision for vacation 4,930.9 4,148.6
Other personal expenses 5,316.7 4,121.9
Losses and Risks 2,482.9 5,461.9
Other liabiliies 8,589.7 7,989.0
Short term provisions
Liabilities to associated
21,320.2 21,721.4
companies 378.0 2,000.0
Tax liabilities 5,667.8 3,901.6
Social security liabilities 1,466.2 3,475.1
Other liabilities
Goverment grants
2,946.2 3,762.8
within one year 1,196.0 973.3
Deferred charges 2.2 1,250.1
Total 32,976.6 37,084.3
The item Other short-term provisions specifi cally includes provisions
for warranties and outstanding invoices. The changes of the
short-term provisions are explained in Enclosure 4 to the Notes.
E. OTHER EXPLANATORY COMMENTS
1. Cash Flow Statements
The cash fl ow statement follows the indirect method. Cash and
cash equivalents exclusively include cash in hand, cash at banks
as well as securities in the current assets which can be sold in the
short term. The income tax payments are reported separately in
the Operating cash fl ow statement.
POLYTEC
ANNUAL REPORT 2006
NOTES
Interest earnings and expenses are allocated to the appropriate
business operations. The relating amounts are as follows:
IN TEUR 2006 2005
Interest cash in 1,365.4 1,110.4
Interst cash out -3,658.3 -4,084.6
Total -2,292.9 -2,974.2
Dividend payments are reported as part of the fi nancing activities.
The effects resulting from the changes of the scope of consolidation
were eliminated and are reported as Cash fl ow from investing
activities.
2. Subsequent after the Balance Sheet Date
Based on the Agreement of November 8, 2006, Polytec Holding
Deutschland GmbH has entered into an agreement on the acquisition
of the remaining 40% of the shares in Polytec Interior South
Africa (Proprietary) Ltd. The rights and obligations arising from
the shares will be transferred on July 1, 2007 according to this
purchase agreement, so that no acquisition of shares had to be
reported in the Balance Sheet in the fi nancial year 2006. Based
on the foreseeable acquisition of the shares and the fact that no
balance for the start-up losses of the company are provided for
in the purchase agreement, the cumulative losses arising for the
minority shareholders were set off with the Group’s equity as of
December 31, 2006.
Polytec Interior UK Ltd. has stopped its business operation after
the end of an order from Land Rover in the 4th quarter of the fi nancial
year and will be eliminated from the scope of consolidated
companies of POLYTEC GROUP beginning with January 1, 2007.
The company has no fi xed assets as of the balance sheet date.
Further events after the balance sheet date which would be substantive
for the fair valuation on the balance sheet date, such as
outstanding legal cases and claims for damages as well as other
liabilities or threatening losses which had to be recognised or disclosed
according to IAS 10 (Contingencies and Events occurring
after the Balance Sheet Date) are included in the Consolidated
Financial Statement or were not known.
3. Other Obligations and Risks
There is a warranty concerning a rent contract for TEUR 1,500.0
(previous year: TEUR 1,500.0) vis-à-vis POLYTEC Immobilien
GmbH group.
Other obligations and risks which were not refl ected suffi ciently
in the Consolidated Financial Statement or listed in the Notes do
not exist.